cancellation of GST registration
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Case Title |
M.Mallika Mahal vs The Commissioner of Central GST and Central Excise and Ors |
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Court |
Madras High Court |
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Honorable Judges |
Justice Anita Sumanth |
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Citation |
2022 (8) GSTPanacea 302 HC Madras WP.Nos.10663 of 2022 |
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Judgement Date |
17-August-2022 |
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Council for Petitioner |
Mr.J.Vijayaraja |
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Council for Respondent |
Mr.C.Harsha Raj, |
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In Favor Of |
Petitioner |
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Section |
Section 30 of the CGST Act,2017 |
The Madras High Court, Bench of Justice Anita Sumanth, held that the assessee should be permitted to file GST returns for the period before the cancellation of GST Registration and make payment of tax dues along with interest. Also, the Court directed the assessing authority to instruct GSTN to make necessary changes in the portal to facilitate these changes
cancellation of GST registration
FACTS OF THE CASE
Mallika Mahal (“the Petitioner”) was given several opportunities that were extended to them even though they missed those opportunities post-cancellation of the registrations by way of Amnesty Schemes wherein they were granted an extension of time to take necessary steps to restore the cancelled registrations. There are various remedies mentioned in the Central Goods and Services Act, 2017 (“the CGST Act”). As per Section 30 of the CGST Act, the benefit has to be availed within thirty days from the date of cancellation of the order, but the Petitioner did not avail this remedy. Further, the other available remedy is to file an appeal before the Appellate Authority (“the Respondent”) within a period of three months from the date of communication of the cancellation order to the dealer. Although the Petitioner availed this remedy, with a delay, and the appeal was accompanied by returns for a period of six months with the admitted tax. But, the Respondent rejected the appeal against which the present writ petitions have been filed by the Petitioner.
cancellation of GST registration
COURT HELD
The Hon’ble Madras High Court in WP.Nos.10663 of 2022 dated August 17, 2022, held as under: Observed that the Petitioner are permitted to file their GST returns for the period prior to the cancellation of registration, if such returns have not been already filed, together with tax defaulted which has not been paid prior to cancellation along with interest for such belated payment of tax and fine and fee fixed for belated filing of returns for the defaulted period under the provisions of the CGST Act, within a period of 45 days from the date of receipt of a copy of this order, if it has not been already paid. Directed the Respondent to take steps by instructing GST Network, New Delhi to make suitable changes in the architecture of the GST Web Portal within a period of 45 days from the date of receipt of a copy of this order to allow the Petitioner to file their returns and to pay the tax, penalty, or fine. Therefore, the writ petition was allowed by the Hon’ble Court in favor of the Petitioner.
cancellation of GST registration
ANALYSIS OF THE JUDGEMENT
From the above case we can conclude that that no useful purpose will be served by keeping these petitioners out of the bounds of GST regime under the respective GST enactments other than to allow further leakage of the revenue and to isolate these petitioners from the main stream contrary to the objects of the respective GST enactments. The purpose of GST registration is only to ensure just tax gets collected on supplies of goods or service or both and is paid to the exchequer. Keeping these petitioners outside the bounds of the GST regime is a self-defeating move as no tax will get paid on the supplies of these petitioners.
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